SYDNEY, June 20, 2026, 04:04 AEST
- Wesfarmers slipped to A$85.76 at Friday’s close, down 0.02% on the day and off 0.8% for the week. The S&P/ASX 200 dropped 0.93% Friday.
- Kmart has launched its first K Home store, putting the Anko brand into its own space focused on furniture and home-living.
- Investors are watching for Australia’s May inflation report on June 24, with the Reserve Bank keeping its cash rate at 4.35%.
Wesfarmers closed Friday at A$85.76, nearly flat on the day. The owner of Bunnings and Kmart ended the week down 0.8% from last Friday. Shares moved between A$84.98 and A$86.36, finishing two cents off.
That was a steadier close than the main market. Australian shares dropped close to 1%. BHP lost 5.6% and the mining index was down 4% after the miner reported a US$2.3 billion charge for cost overruns at its Jansen potash project.
Wesfarmers isn’t running cheap. On Thursday, its market cap was around A$97.4 billion with a trailing P/E of 31.8, so investors are still paying close to 32 times yearly EPS. Shares went sideways on Friday, which didn’t move the needle.
Kmart’s K Home test store in Box Hill South, Melbourne is drawing new notice. The store covers about 3,000 square metres and shows off Anko furniture and homewares in arranged rooms, bringing in some items that customers could only buy online before. “We’ve continued to grow our furniture and home offer and customers have responded strongly,” Kmart executive Courtny Keeble said. The Australian
The move puts Kmart up against Ikea, Amart and Freedom. Wesfarmers is betting on a bigger market for Anko and a shot at moving more large-ticket, bulky items. But keeping Kmart’s low-price formula gets harder as it deals with delivery costs, extra display room and more furniture stuck on the floor.
Wesfarmers brought up the K Home format at its June 10 strategy update. So this week’s launch will test how well the idea works, but isn’t a big earnings event yet. A single store should show initial shopper reaction. Still, Wesfarmers will need more locations and data to see if the model can make decent returns.
Bunnings and Kmart still stand out as the main concern for Wesfarmers shareholders. First-half profit at Wesfarmers was up 9.3% at A$1.6 billion. Bunnings earnings rose 5.5%, Kmart up 7%. But early second-half sales growth fell short of what the market wanted. Chief Executive Rob Scott said, “it is lower-income families that bear the brunt” of inflation. Reuters
But the risks are still there. K Home is just one store for now. High borrowing costs keep pressure on housing, renovations and discretionary buys. The Reserve Bank kept rates steady after lifting them 75 basis points this year. Governor Michele Bullock said, “I want to be very clear that inflation remains too high.” Herald Sun
Market focus turns to the May consumer price index next week, due out Wednesday at 11:30 a.m. AEST. The CPI is a key gauge for household inflation. If the number is strong, rate hike bets could pick up again, putting retailers on notice over their current valuations. Wesfarmers isn’t set to give a results update until August 27.
Wesfarmers’ shares held up better than most in Friday’s selloff, keeping some of their defensive draw. The valuation remains stretched, so another leg higher might depend on proof that K Home and other growth bets can drive profits while Bunnings and Kmart keep their returns. For now, K Home stays interesting for strategy, but the numbers aren’t there yet.
